Interesting article about Oil

wanghong

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$ `* v. X- O6 W- O* KBelow is an Interesting article I found, which says that.....Do not
0 S' H$ g" I. w7 }expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
. l5 W0 f" E& X8 `. C/ B7 u& d0 K8 j/ ?these oil producer will go bankrupt or out of the business even if
6 Q6 S0 H( b9 A8 y1 M: dcrude prices improves. This implies also to good names such as Shell,
& D+ Y3 w' q7 e0 ~$ JEXXON, BG, BP, Cheveron ....xyz.. oils
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/ Z- y  P" P3 h* URecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
% o5 b0 W; c6 u9 k- u( v$ RA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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# e$ b( k( z3 a2 ^; @3 `1. New oil has been found in Canada, Montana, North & South Dakota and
8 ~+ U/ N, [$ {; a3 z' min the ocean near Brazil. Each of these oil fields has more oil than
0 l' c0 Q4 k. ?) e  ?Arabia.
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1 R# B- u. \/ i6 }1 O% U2. New natural gas has been found in Pennsylvania and West Virginia.
  X. T& }9 f) O: g- C: p' CThis is the largest find in North America.


' D1 R4 d$ k- L3 {1 V8 c' _3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
3 Y" t" f! t+ @% w$ s- `0 d- G# ufuel is being produced from many plants and algae. The production
, |5 G4 E% `! ?* Epotential per acre in some cases is astounding. Many countries are
' `1 j6 _9 G8 kracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
; m2 r( {; q$ H$ J. Xproducing 30,000 gallons of bio-diesel per day from pork fat.
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5 }% ]4 ?; R  M1 n& w- m6. There are 99 nuclear reactors in various stages of planning and
6 ]# X& y$ L9 B1 X$ u4 r, j% `9 S4 ^construction around the world at this time. Several hundred more are
2 A; g% h$ z, Q5 Y" @/ B% qexpected to be built in the future. Much of the energy they produce
will replace oil.

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. p& v  `8 V% a7. Every company in any form of transportaion business is replacing
6 `9 R" [1 p% Iolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
8 ~9 ?% E8 ], p9 j7 e8 o7 @are experiencing 20% to 25% better fuel econony with the new
equipment.
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  ~( `  w* y0 Y0 O4 p. g; DAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
: l1 A. m2 O) K" V. B* f. Aoil wells.

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- g; _, i5 l. [" ]5 @0 x: L10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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* m9 F2 |" c4 e4 \Each of the above by itself will not make a large difference in the
- a6 s, Y* ^' N# A7 O8 [price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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) ^9 A1 h; ~9 x0 KWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
4 H" C2 B( g3 v% t+ T; S4 hvalue .....
4 I. T0 h8 J% P  \% W% B9 M6 kIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only